1. Field of the Invention
The present invention relates generally to a computerized disbursement system and method, and, more specifically, to a computerized system and method for automatic remittance delivery via one or more delivery mechanisms, based upon pre-defined criteria stored in a database.
2. Brief Description of Related Art
Computerized financial data processing and accounting systems are well known in the art. Typically, such systems permit the user to effectuate disbursements by e.g., printing checks and making payments via electronic funds transfers (EFT), monitor and balance bank accounts, and/or perform automated auditing and billing functions.
One prior art financial data processing system is disclosed in U.S. Pat. No. 5,121,945 to Thompson et al. The system disclosed in this patent automatically debits or credits multiple bank account records and accounts receivable records based customer payments. The system prepares integrated documents including an invoice and a check using a laser printer. Issuance of the document is based upon database tables with information including customer name and address, financial institution and account number, payee name and address, billing amount, accounts receivable account number, etc. Such data may be input manually or from other databases. The document is sent to the customer being invoiced, who fills out various sections of the front portion of the check, signs it, and returns it to the invoicer for cashing. The system also permits payment by EFT rather than check, via e.g., credit card, automated clearing house, automatic teller machine, etc. Access to database information may be protected by requiring entry of a password and/or security code information. The system also generates various accounting reports based upon the customer database information.
Another such system is disclosed in U.S. Pat. No. 4,385,285 to Horst et al. The patent discloses a check dispensing system for issuing checks from a terminal. The system includes an identification card reader for identifying an account number from which to draw funds for the check and a handwriting transducer from inputting identification data to determine whether the user is authorized to issue checks from the account number. The system also includes a keypad for inputting the desired amount of the check and bank data system for evaluating the current balance of the account and whether there are sufficient funds to issue the check for the amount requested. The system evaluates whether the signature provided via the transducer matches with an authorized signature on file and/or requests other authentication data, e.g., palm print, identification number, etc. If the system accepts the user's request to issue the check, the user then is prompted to input a payee code number to identify to whom the check is to be made payable. A printer prints the check.
Another prior art financial data processing system is provided by Intuit corporation's Quicken 5.TM. financial management computer program. The Quicken 5.TM. program tracks user checking, savings, credit card, investment, and loan accounts. It also performs basic budgeting, financial planning, and audit report generating functions. It also includes check disbursement (from pre-printed check stock) and electronic bill paying functions.
Yet another prior art financial data processing system is provided by Bottomline Technologies, Inc., the assignee of the subject application, by the company's Lasercheck.RTM. computer program. The company's Lasercheck.RTM. computer program comprises a standalone check writing system which permits a user to produce a completed check on blank paper using MICR information. The company's Lasercheck.RTM. computer program also performs basic accounting report generating functions and security while eliminating typing or handwritten checks.
Unfortunately, none of the aforesaid prior art permits fully automated payment disbursement according to user-predefined criteria, such as, disbursement financial account (e.g., bank or investment account number and type of account) and manner of payment (e.g., whether disbursement is to be made by hard-copy Magnetic Ink Character Recognizable (MICR) negotiable instrument or by EFT) for different types of disbursements to be made (e.g., payments to suppliers rebates, taxes, etc.) and individual disbursement requests (e.g., including such information as disbursement amount, intended payee, etc.). Additionally, none of the aforesaid prior art provides fully automated diagnostic means for monitoring whether the system is functioning properly and for preventing improper disbursements from taking place.
Other examples of prior art financial data processing systems and methods are disclosed in U.S. Pat. No. 5,283,829 to Anderson and U.S. Pat. No. 5,193,055 to Brown. These systems and methods also suffer from the aforesaid and/or other disadvantages of the aforesaid prior art.
Another aspect of payment disbursement is remittance data delivery. Remittance data information, as is understood in the art, is generally of the form of a list of items for which the payee is receiving payment, and may include item purchased (e.g., serial number, name, SKU, etc.), date purchased, itemized amount, total amount, etc.
For example, for transactions between enterprises, financial EDI (FEDI) is the recommended solution for organizations wishing to pay other organizations (typically vendors) electronically. FEDI requires that the payor have specialized software to create standardized electronic payment formats. Moreover, the vendor's bank must be capable of transacting under the FEDI standard. However, according to the National Automated Clearing House Association (NACHA), only 15% of banks in the US are able or willing to receive and pass on FEDI information. Also, the vendor (payee) must translate the electronic invoice information included with the payment and map the information into their accounts receivable system. Thus, significant roadblocks exist for businesses wishing to reap the benefits of paying electronically.
Transactions among individual suffer similar drawbacks. For example, some payroll systems can produce electronic payments for employees. Most other payment systems, for example, T&E, claims, trust, interested and dividend, still only create paper checks. Even if the payment is made electronically, the payee is notified of the payment via a "deposit advice form"--a piece of paper. This deposit advice form still requires handling, possibly postage, and distribution. Mail delays and loss create confusion and dissatisfaction on the vendors side.